Cryptocurrency exchange Bitstamp has tapped financial technology solutions provider Cinnober to replace its in-house matching system, which will make for speedier completion of trades.
Bitstamp Chief Technology Officer David Osojnik, in a press release, said that he expected the platform’s order matching speed to become 1,250 times faster than at present, with throughput increasing 400 times. “While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience,” he said.
Implementation of the new matching engine, which will use Cinnober’s TRADExpress Trading System, will be in several phases, beginning in the first quarter of 2019, with full implementation targeted by the second quarter.
Bitstamp CEO Nejc Kodrič said, “This is a crucial step on our mission to bridge the gap between crypto and traditional finance. Our matching engine will be on par with traditional exchanges in both speed and throughput, once again placing Bitstamp on the technological frontier of crypto trading.”
Just last week, Bitstamp announced it had been acquired by investment firm NXMH, which will hold an 80% stake in the exchange. Last September, Nasdaq announced its public offer to acquire Cinnober for $190 million.
Cinnober, in its statement, said the new trading system will allow Bitstamp to meet demands even as the cryptocurrency market grows further. Cinnober Group CEO Peter Lenardos said, “By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, [Bitstamp] demonstrate[s] their firm commitment to providing a safe and reliable marketplace.”
Among Cinnober’s existing clients are the Australian Securities Exchange, Brazil-based B3, the Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, the London Metal Exchange, the Johannesburg Stock Exchange, and the Stock Exchange of Thailand.
Last month, Cinnober partnered with cryptocurrency payment solutions provider GAP600 to enable instant confirmation of cryptocurrency transactions on exchanges. The value-added functionality uses a risk engine that determines the risk involved with each transaction, and guarantees payments via an underwriter.
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